California Multifamily Developer Plans Project in Texas
- Mar 20, 2013
Cypress, Texas—AMCAL Multi-Housing has unveiled plans for AT Villages at Cypress, a 162-unit, mixed-income seniors housing property. The site is on a vacant 7.2-acre parcel in the Houston suburb of Cypress, which is in Harris County northwest of central Houston.
AT Villages at Cypress will include 111 one-bedroom units and 51 two-bedroom units, with the majority reserved for households earning 30 percent to 60 percent of Harris County area median income. The property will also include 15 market-rate residences and a 6,500-square-foot amenity center with a theater, game room, hair salon and swimming pool.
The property is being financed with $14.8 million in 9 percent LIHTC, as well as conventional mortgage financing. Bank of America is providing both construction and permanent loans, and equity financing.
The development represents the first time that Agoura Hills, Calif.-based AMCAL is developing a property in Texas. Most recently, the company completed four projected in southern California, including Mission Apartments in San Diego. Besides the new Texas project, eight more AMCAL properties are currently in the works.
Now is the time to jump in Texas apartment markets, according to the company. Houston’s apartment market, for one, has been stronger than most others nationwide in recent years.
Investment specialist Marcus & Millichap predicts that apartment vacancies will drop again this year as Houston’s economy generate jobs (95,600 positions in 2013), many of which will be in the energy and health-care sectors. The company also forecasts that area apartment rents will go up 4.5 percent for asking and 4.8 percent for effective this year.